CME GROUP CEO, CRAIG DONOHUE, TELLS FOX BUSINESS NETWORK THAT THE CREDIT CRISIS HAS BEEN GOOD FOR HIS BUSINESS

Courtesy of FOX Business Network

In a broadcast interview with FOX Business Network’s Cheryl Casone, Craig Donohue talked about why third quarter earnings were up 94%, the state of the CME/CBOT merger, and the tremendous growth opportunities that exist internationally. Below are the excerpts. The full transcript is available upon request.

On why third quarter earnings were up 94%:

“We’ve had tremendous activity in our markets in the third quarter. Our average daily volume is nearly 13 million contracts and one of the things we found is that with recent market conditions the credit crisis has really driven people to our market because we provide very deep liquidity, instantaneous pricing, and very efficient counter-party credit mechanisms that make it a safe haven for investors.”

On the progress of the CME / CBOT merger:

“Very positive. We closed our merger transaction in July. We announced fairly significant headcount reductions in August. We’ve indicated that we’ll actually complete the transition of all of our electronic products to the CME Globex platform in January and the integration of our two separate trading floors in May. So, we’re ahead of schedule and right on track.”

On the future of the exchange:

“We’ve got tremendous growth opportunities not just in the current core business but obviously global expansion is a huge focus for us. We just announced today that we acquired a 10% stake with the Brazilian exchange. We have a non-binding agreement with them, which we’re in the process of completing and that will tap us into the Latin American markets. We have a new agreement with the Korean exchange to trade the Korean stock index futures product in the CME Globex platform and we’re working on a number of different ways we can expand globally. And, then of course, there are the growth initiatives we have in the OTC market and also in our transaction processing business.”

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